Significant trends in corporate environmental accountability

The standards utilized by international financial institutions to review proposed private-sector projects and determine the environmental conditions for their financing can be extremely influential in ensuring more sustainable practices by private companies. The most notable example is provided by the new Performance Standards of the International Finance Corporation (IFC), which are expressly based on international environmental law. This article will highlight the additions and changes between the new (2006) and the previous (1998) environmental standards applied by the IFC, and the new standards will be compared with emerging international environmental standards identified by other international organizations. The article will conclude by highlighting the limitations of the new IFC Performance Standards as well as their innovative character and level of detail, and suggest ways that can ensure their actual impact on corporate conduct.